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More Enron subpoenas
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February 8, 2002: 4:39 p.m. ET
Creditors file court claims, ask to subpoena execs, lawyers and accountants.
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NEW YORK (CNN/Money) - Creditors of failed Enron Corp. have asked a New York bankruptcy court to force the energy trader and various other companies -- including PricewaterhouseCoopers and Vinson & Elkins -- to produce documents and witnesses related to Enron's use of off-the-book partnerships to conceal debt.
The Official Committee of Unsecured Creditors asked a New York bankruptcy court Thursday to see the records of more than 50 Enron partnerships and special purpose entities, including LJM Cayman LP, Chewco Investments LP and Joint Energy Development Investments LP (JEDI).
The off-the-book partnerships were allegedly used by Enron to hide $1 billion in debt and were instrumental in the collapse of the once mighty energy trader, according to a special report from independent Enron directors.
Houston-based Enron filed the largest bankruptcy in United States history in early December.
The creditors require the information because they need to adequately assess Enron's off-balance-sheet assets and liabilities. The material may also be used for possible lawsuits against third parties, the court documents said.
A hearing is set for Feb. 21, court documents said.
The creditors are also looking to subpoena seven Enron executives, including ex-CEO Jeff Skilling, ex-Chief Financial Officer Andrew Fastow, and former Enron officer Michael Kopper, court documents said.
Skilling repeatedly told a Congressional panel Thursday that he knew nothing of any off-the-books partnerships Enron used to hide debt.
The Creditors Committee also wants to subpoena law firms Vinson & Elkins; Fried, Frank, Harris, Shriver & Jacobson; and Kirkland & Ellis. The creditors believe that Vinson & Elkins has original data regarding Enron's special purpose entities, partnerships and joint ventures. The law firm reportedly advised Enron on its partnerships and off-the-book transactions.
"The committee believes that V&E played a significant role in the Debtor's use of various 'Special Purpose Entities' and other financing vehicles to hold off-balance-sheet assets and liabilities," court documents said.
Enron in-house attorney Jordan Mintz testified before Congress Thursday that he hired Fried, Frank to investigate the propriety of Enron's partnerships. The law firm told Enron to end the partnerships.
The creditors are looking to compel accounting firm PwC to produce records relating to Enron. PwC acted as independent auditor to certain Enron partnerships, the creditors said.
Lastly, the creditor committee hopes to force McKinsey & Co. to produce records relating to Enron because it believes the consulting firm advised Enron in the use of the off-balance-sheet transactions. 
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